The United States imposes a 25% tariff on non-USMCA auto parts, but avoids duplicate tariff charges.

Mexican auto parts that qualify as eligible under the USMCA will continue to be exempt from the Section 232 tariff. This exemption will be temporary, with a minimum duration of 90 days from the effective date of the measure.

After that time, the tariff could apply only to non-U.S.-origin content. This will depend on the establishment of a technical process that allows such distinction.

Although it was previously indicated that these auto parts would not pay any tariffs, this new information confirms that the current exemption is provisional.

Non-USMCA auto parts

On April 29, 2025, President Donald Trump announced two key tariff policy actions.

First, an Executive Order limiting the cumulative application of tariffs. Second, an Import Offset Program focused on auto parts affected by Section 232.

According to Global Alliance, these are the most relevant provisions of the new U.S. government actions:

1. Executive Order on the application of cumulative tariffs

The new rule clarifies that certain tariffs may not be cumulative. The objective is to avoid undue overcharges on the same product. Main scenarios are as follows:

• If you apply the Section 232 auto tariff, the tariffs of:
  • IEEPA (Border Emergency with Mexico or Canada).
  • Steel or Aluminum (Section 232)
• If border emergency IEEPA duties apply, steel or aluminum duties will not be added.
• Important exception: if a product contains both steel and aluminum, both 25% tariffs will apply. In this case, they are cumulative.
• Retroactive application: The measure is effective as of March 4, 2025. It is recommended to review all imports from that date, as they may qualify for tariff refunds.

2. Import Offset Program for Auto Parts

• A new support mechanism is created for manufacturers that assemble vehicles in the U.S. Through this program, they will be able to offset part of the impact of tariffs under Section 232.
• The offset will be of:
  • 3.75% of the MSRP of vehicles assembled between April 2025 and April 2026.
  • 2.5% of the MSRP between May 2026 and April 2027.
• Only applies to vehicles assembled within the United States.
• The Department of Commerce must publish guidelines for applying for this offset by May 29, 2025.

3. New auto parts tariff goes into effect

• Customs and Border Protection (CBP) has issued new tariff guidance. Effective May 3, 2025 at 12:01 a.m. ET, an additional 25% tariff on certain auto parts imported from any country goes into effect.
• This action is based on Presidential Proclamation 10908, issued on March 26, 2025 under Section 232 of the Trade Expansion Act of 1962.